Morgan Stanley Global Private Equity Completes the Sale of Zenith

Morgan Stanley Global Private Equity Completes the Sale of Zenith

Press Release

Morgan Stanley Global Private Equity Completes the Sale of Zenith

Morgan Stanley Global Private Equity Completes the Sale of Zenith

March 06, 2014

LONDON — Mar 6, 2014

Morgan Stanley Global Private Equity (“MSPE”) today announced the recent completion of the sale of its majority interest in Accelerate Acquisitions Limited, the parent company of Zenith, to HgCapital, a UK-based private equity fund.

MSPE made its investment in Accelerate Acquisitions Limited in September 2010 on the back of an extensive two-year review of the UK fleet management sector.

Jean-Marc Jabre, Managing Director of MSPE, commented “Our focus on this sector gave us a keen appreciation for the growth potential of an industry undergoing a significant transformation. Given Zenith’s proven track record, innovative approach to business and superior customer service, we proactively approached and partnered with a management team who shared our ambition to grow profits and market share significantly.”

During the investment period, there have been notable changes in the business. These initiatives include attracting seasoned executives in Zenith’s business development and commercial functions, improving the supply chain, investing in systems and infrastructure, and developing an innovative securitization funding strategy.

James Howland, Managing Director and Operating Partner of MSPE, commented “We have been very focused on driving value creation and are delighted with the way that the business developed during our investment period. We are grateful to the management team and wish to thank Andrew Cope, Tim Buchan and Mark Phillips for their leadership.”

Whilst the terms of the transaction are not disclosed, the sale delivers 3.8x the original cost to investors.

Zenith is the leading independent fleet management and outsourcing provider to the UK corporate vehicle market. The company was awarded the Fleet News ‘Leasing Company of the Year’ Award for the past two years, and is the only fleet management company to win and retain this prestigious award. Zenith was recently ranked 12th in the FN50’s list of the UK’s top 50 contract hire companies, and has a risk fleet of over 27,000 vehicles. The company is widely regarded as having industry leading IT systems, and Pulse, its online fleet diagnostic platform, has won many accolades including the Fleet News ‘Best New Product or Service’ Award and the BusinessCar Techies Award.

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